Recently, the Prime Minister of India has announced the ban of 500 and 1,000 rupee notes in an attempt to make India a cashless society.
However, India isn’t the only country that is moving towards a cashless society. Notably, cash payments have dwindled so much in Nordic countries that the biggest bank in Norway has called for an end to physical currency, while other banks across Scandinavia have ceased the handling of cash over the counter.
You can see in the diagram below that the amount of cash transactions in Australia has decreased while the amount of electronic transactions has significantly increased.
What you need to know as we move towards a cashless society
So you may be wondering what is a cashless society: it’s a society where no one uses cash and all purchases are made by credit cards, debit cards or electronic transfer.
Consumers have already begun embracing these cashless ways to pay. Tap and go cards, prepaid credit cards and online shopping have become more and more prevalent and have taken the place of cash transactions. We are well on our way to becoming a cashless society.
It’s difficult to predict how a cashless financial system would work but there are many benefits to having a cashless society such as eliminating black markets and the convenience of it all. However, a cashless society also comes with some disadvantages, the main concern being security.
What you can do to protect yourself
- Before you make any purchases when shopping online make sure the website is secure. Look for a locked padlock icon in the toolbar and a web address beginning with https:// the ‘s’ stands for secure.
- Most of these websites will require you to make a password before payment, this is to keep your personal details private so it’s important to make a strong password. Read our blogs about passwords and creating good security questions for more tips.
- Avoid entering private information like your credit card details when using a public computer or using public Wi-Fi as you can not guarantee that these are secure.
- Read our blog on secure online shopping for more information and tips on keeping your details secure.
Using a credit card or debit card
- Set a PIN that can not be easily guessed – avoid using combinations like your name or date of birth
- Don’t share your PIN with anyone.
- When entering your PIN alway try to keep it covered.
- If you have lost your card some banks allow you to put a temporary lock on it until you are able to locate it.
- If you can not find your card or you are worried that it has been stolen get in contact with your bank straight away to cancel it.
- Keep an eye on your bank statements and transactions for any unfamiliar activity.
While we cannot predict if and when we will become a cashless society and what effects it will have, we’re certainly moving towards one. Your best bet is to stay informed and make sure you check our blog about protecting yourself online.
What’re your opinions on becoming a cashless society? Share your thoughts in the comments below.